Sterling
Despite worse than expected Construction Purchase Managers Index (PMI) data yesterday sterling had a fairly steady day. While it traded in a very tight range against the euro just below 1.18 mark, sterling gained against the US dollar on the hope that UK Services PMI would be positive tomorrow, and that the Bank of England will refrain from extending its quantitative easing programs. Last month three of the nine members of the monetary policy committee voted in favour of a further asset purchasing and any deviation from this figure will affect sterling dramatically. This morning sterling has been under pressure and has lost ground as worries begin to mount on a negative outcome from the Bank of England meeting. Call us now for the latest news and up to the second prices.
Euro
The 17-nation currency rose against most of its major peers as the International Monetary Fund announced it would provide 10 billion euros of aid to Cyprus. Inflation estimates released in the Eurozone for March came out slightly above expectations at 1.7%, but did little to influence the relative strength of the euro. The main news on the economic agenda today will be the ECB meeting and its announcement on interest rates which are expected to remain unchanged. Other data released today will include the Spanish and French ten-year bond auctions, as well as the Services PMI data that is released across Europe. A busy day for Europe and an increased chance of volatility, call in now for the latest developments.
US dollar
The US dollar struggled yesterday following reports outlining less job creation than forecast in the US private sector and a slowdown in growth across the services industry, which contrasts negatively with the encouraging signs of recovery within the world’s largest economy over the last few months. The ADP National Employment Report, following weak manufacturing data on Monday, indicated that momentum had stalled after an encouraging run of data recently whilst the services and employment indices dropped below economist’s forecasts. Several members of the Federal Reserve will speak today including the Chairman of the Federal Bank and these speeches often provide insights as to future monetary policy and can affect currency movements, so get in touch for the latest news and market updates with Smart.
Worldwide
Elsewhere, the Russian rouble had a weak day yesterday; falling further than in recent weeks it against the central bank's Euro/US dollar basket, and was the worst performing of 31 major currencies. The fall in value was a result of the biggest outflow of capital from Russia in over a year - a fallout from Europe’s financial crisis, and indicative of wider uncertainty globally. The South African rand performed relatively well as better than expected business confidence figures were released, whilst the Australian dollar reacted positively after figures showed the nation’s trade gap had narrowed. The Japanese yen made considerable gains against all of its major trading peers yesterday as traders started to bet against the new Governor imposing the ultra-loose monetary policy that had originally been predicted but overnight we saw the Japanese yen weaken dramatically after the new Governor expanded its monetary stimulus program by doubling the monthly purchases in an attempt to drive up inflation. This move exceeded many analysts expectations, hence the aggressive reaction in the market. Call in to speak to your trader and for a live update from the market.
Despite worse than expected Construction Purchase Managers Index (PMI) data yesterday sterling had a fairly steady day. While it traded in a very tight range against the euro just below 1.18 mark, sterling gained against the US dollar on the hope that UK Services PMI would be positive tomorrow, and that the Bank of England will refrain from extending its quantitative easing programs. Last month three of the nine members of the monetary policy committee voted in favour of a further asset purchasing and any deviation from this figure will affect sterling dramatically. This morning sterling has been under pressure and has lost ground as worries begin to mount on a negative outcome from the Bank of England meeting. Call us now for the latest news and up to the second prices.
Euro
The 17-nation currency rose against most of its major peers as the International Monetary Fund announced it would provide 10 billion euros of aid to Cyprus. Inflation estimates released in the Eurozone for March came out slightly above expectations at 1.7%, but did little to influence the relative strength of the euro. The main news on the economic agenda today will be the ECB meeting and its announcement on interest rates which are expected to remain unchanged. Other data released today will include the Spanish and French ten-year bond auctions, as well as the Services PMI data that is released across Europe. A busy day for Europe and an increased chance of volatility, call in now for the latest developments.
US dollar
The US dollar struggled yesterday following reports outlining less job creation than forecast in the US private sector and a slowdown in growth across the services industry, which contrasts negatively with the encouraging signs of recovery within the world’s largest economy over the last few months. The ADP National Employment Report, following weak manufacturing data on Monday, indicated that momentum had stalled after an encouraging run of data recently whilst the services and employment indices dropped below economist’s forecasts. Several members of the Federal Reserve will speak today including the Chairman of the Federal Bank and these speeches often provide insights as to future monetary policy and can affect currency movements, so get in touch for the latest news and market updates with Smart.
Worldwide
Elsewhere, the Russian rouble had a weak day yesterday; falling further than in recent weeks it against the central bank's Euro/US dollar basket, and was the worst performing of 31 major currencies. The fall in value was a result of the biggest outflow of capital from Russia in over a year - a fallout from Europe’s financial crisis, and indicative of wider uncertainty globally. The South African rand performed relatively well as better than expected business confidence figures were released, whilst the Australian dollar reacted positively after figures showed the nation’s trade gap had narrowed. The Japanese yen made considerable gains against all of its major trading peers yesterday as traders started to bet against the new Governor imposing the ultra-loose monetary policy that had originally been predicted but overnight we saw the Japanese yen weaken dramatically after the new Governor expanded its monetary stimulus program by doubling the monthly purchases in an attempt to drive up inflation. This move exceeded many analysts expectations, hence the aggressive reaction in the market. Call in to speak to your trader and for a live update from the market.
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